2023 · Q57
An employee working in an establishment draws a monthly wage of ₹ 9,000 as fixed under the Minimum Wages Act, 1948 and is eligible to get bonus under the Payment of Bonus, Act, 1965 for the accounting year 2021-22. The bonus payable is at the rate of 10%. If the employee has worked paid to the employee? continuously for whole of the said accounting year, then what is the amount of bonus that shall
Industrial Relations and Labour LawsWage-related laws
- A₹ 7,000
- B₹ 8,400
- C₹ 10,000
- D₹ 10,800
Explanation
The eligibility ceiling under the Payment of Bonus Act is Rs. 21,000 per month, so the Rs. 9,000 wage-earner qualifies; but Section 12 caps the wage used for computation at Rs. 7,000 per month. Bonus = Rs. 7,000 x 12 x 10% = Rs. 8,400. Option D (Rs. 10,800) wrongly computes on the full wage. Hence B.